A homeowner who said she was charged more than $11,000 for flood cover she did not want has lost a refund dispute because she did not properly inform her insurer she was opting out.  

The woman contacted CGU in August 2023 to transfer her home and contents policy to a new address. During the call, she said she wanted to end flood cover, reducing her annual premium from $13,652 to $2369.  

The insurer confirmed the move for the remainder of the coverage period but said flood would again be included when the policy next renewed, and she would need to opt out once more.  

The homeowner did not do so and the cover was included when her policy automatically renewed.  

The insured said she failed to contact the insurer again due to personal circumstances, including caring for her father who had cancer.

She also said she did not receive proper documentation detailing the premium increase and became aware of it only when she received her renewal notice the following year.  

The woman argued the insurer should have called or texted each year to remind her about the flood cover, or created a new policy without the cover when she transferred homes.  

But the Australian Financial Complaints Authority says CGU made appropriate contact. It sent renewal documents to the correct address in November 2023, and AFCA notes the woman had no issues receiving renewal documents the following year.  

The woman outlined her intention to opt out of flood cover over the phone, but the policy terms required written notification.  

“The insurer complied with its obligations, the complainant accepted the renewal and cover was provided,” the authority said. “The insurer was on risk for flood during the policy period. It would not be fair to compel a premium refund in these circumstances.”  

See the ruling here.